Elon Musk's company, xAI, specializing in artificial intelligence technologies, is set to expand its presence in Southwest Memphis following unanimous approval from the Economic Development Growth Engine (EDGE) for Memphis and Shelby County. In a move that some local leaders call "historic," the EDGE board voted to approve a 21-year land lease for expansion adjacent to the already established supercomputer site, as detailed by FOX13 Memphis.
According to Action News 5, the proposal includes the rental of over 550 acres of land at the cost of $1.65 million per year after the first year, which will quickly increase by 2.5 percent with each subsequent year. CTC Property, LLC, an affiliate of xAI, also has the option to purchase the land after the lease term for $23.64 million or to extend the lease for a further 10-year term. "This is a catalyst for growth for moving our city forward," EDGE board President & CEO Joann Massey said.
As reported by FOX13 Memphis, the board's decision also prompted comments from Bobby White, the Greater Memphis Chamber's chief government affairs officer. White emphasized the significance of the development, saying, "We need to take in this moment and understand what we’re seeing. We’ve never seen anything of this magnitude in the history of our city."
Despite the optimism surrounding Musk's project's economic impact, community concerns persist. xAI's operations are expected to demand an immense amount of power, specifically 150 megawatts, which is enough to power approximately 100,000 homes.
Aside from the supercomputer expansion, The Commercial Appeal reported that plans are also afoot for what may be a greywater facility associated with xAI. This facility aims to recycle wastewater, designed as a partnership between xAI, the Tennessee Valley Authority (TVA), and Nucor Steel. It could potentially alleviate the strain on the local aquifer by up to 10 million gallons per day. Complete details on the proposed uses of the expanded site remain undisclosed, as representatives have declined to comment on specific future developments post-approval.
